Bitcoin prices are back nearing the psychological $60,000 level as crypto market sentiment continues to be depressed due to concerns over Strategy's financial position and expectations of higher interest rates in the United States.
At the time of writing, Bitcoin prices are at $62,913, down 0.10% since it opened early Friday in Asian trading.
This situation has caused investors' interest in risky assets to decrease even though global stock markets are still showing positive performance.
Bitcoin reportedly fell by 3.4 percent to around $62,184 on Thursday, continuing a downward trend that has seen the world's largest cryptocurrency lose about half of its value compared to its highs recorded in October 2024.
Investor attention is now focused on Strategy, the company led by Michael Saylor and the world's largest corporate holder of Bitcoin.
Concerns are growing as STRC preferred shares used by Strategy to finance its Bitcoin purchases are trading below par at $100.
The situation has made the company's capital-raising efforts increasingly unprofitable, sparking speculation that Strategy may have to sell some of its Bitcoin holdings to meet financial commitments and pay dividends to investors.
Market analysts have also warned that the pressure on Strategy's capital structure could be greater after the company repurchased $1.5 billion in convertible bonds.
This situation has raised concerns that more Bitcoin may need to be sold to strengthen the company's cash flow.
At the same time, expectations that the US Federal Reserve (Fed) will keep interest rates high for longer are also weighing on the crypto market.
A high interest rate environment typically reduces investor appetite for risky assets such as Bitcoin, Ether and Solana, creating an increasingly challenging market environment for the digital asset sector.
